Physical gold is associated with discretion, and it is true that you hold it, not a bank. But buying it is not anonymous. In Spain two rules prevent that, and a third reason, tax, means it is not in your interest to try.
The €1,000 cash limit
Since July 2021 you cannot pay in cash for a transaction of €1,000 or more when one of the parties is a business or a professional. A gold dealer is one. Above that figure you have to pay by bank transfer, card or another traceable method.
Three things worth knowing:
- Splitting does not work. If a €3,000 purchase is broken into three payments of €1,000, they are added together. What counts is the whole transaction.
- The fine is steep. 25% of the amount paid in cash, and both parties are liable for it, the payer and the payee.
- For someone not resident in Spain who is not acting as a business, the limit rises to €10,000.
Identification
Dealers in precious metals are subject to Spain's anti-money-laundering rules. That obliges them to identify the customer with an ID document in transactions of €1,000 or more, and also below that if they see signs that the purchase is being split to avoid it.
In addition, every business reports to the tax office each year its transactions with the same person that exceed €3,005.06 in the year. If you buy investment gold above that figure, your purchase appears in that report.
"A bar without an invoice is not more discreet. It is a bar you cannot prove the cost of."
Why the invoice is in your interest
The day you sell that gold, you pay income tax on the difference between what you receive and what you paid. If you cannot prove the purchase price, the tax office may treat it as having cost you nothing, and then everything you receive counts as a gain. An invoice in your name, with the weight, purity and serial number, is what prevents that. We explain it with figures in how much gold you can sell without declaring it.
There is a second reason. A bar with an invoice and a certificate sells better and faster, because the buyer knows where it comes from. See which documents come with a bar.
Between private individuals
The €1,000 limit applies when a business or professional is involved. Between two private individuals that cap does not apply, but the underlying problem is the same: without a signed contract and payment by transfer, the buyer will not be able to show later how much they paid or where the piece came from. And if the gold comes from an inheritance, also bear in mind what we cover in inheriting physical gold.
What to keep when you buy
- The invoice in your name, itemising each piece.
- Proof of payment: bank transfer or card charge.
- The manufacturer's certificate, if the piece has one.
If you are deciding where to buy, there is a comparison of the options in where to buy gold in Valencia.
Frequently asked questions
How much gold can I buy with cash in Spain?
From a dealer, under €1,000 per transaction. From that figure up you have to pay by bank transfer, card or another traceable method.
Will I be asked for ID?
In transactions of €1,000 or more, yes. And also below that if the seller sees that the purchase is being split.
Does the tax office know I have bought gold?
Businesses report each year their transactions with the same person that exceed €3,005.06. If your purchase is above that figure, it appears in that report.
What is the fine for paying cash above the limit?
25% of the amount paid in cash. Both parties are liable.
Why do I need the invoice?
Because it is the proof of what it cost you. Without it, when you sell, everything you receive may be treated as a gain.